I am super excited to join the CoinFund team as a Managing Partner, with a focus on our liquid investment strategies. Blockchain, digital assets, and the development of decentralization technology have been extracurricular passions of mine since 2012. Now it’s time to go full time!
Jake, Alex, Oleg, Devin, Ryan and Jason have built an amazing reputation in the blockchain space as early thought leaders, researchers, and valuable partners to projects. CoinFund has invested in some of the top emerging growth companies of the past two years. I look forward to helping to broaden the firm’s expertise and product offerings in the liquid crypto and equity markets.
My focus is going to be on merging our team’s deep knowledge of digital asset markets with a core fundamental investing approach, as well as finding opportunities within traditional equities where our understanding of the decentralized world provides an edge. I call the latter opportunity convergence, where crypto and equity markets become more integrated, and I think we will see that expand over time. Risk management will be critical, as it offers a great opportunity to generate outperformance when volatility is high, like in these new markets.
Digital assets are a new asset class that requires a multifaceted approach to helping investments succeed. A foundational example is CoinFund’s network lifecycle investing, our approach to investing in decentralized protocols that the team has refined over several years. While support starts with capital, as a new protocol grows we provide key technical, infrastructure, and governance support. CoinFund brings to the table one of the longest track records- over 30 years of combined blockchain experience- with blockchain technology development, protocol design, digital asset economics, and decentralization roadmaps.
Education is going to be a key focus. Over the next few months you should expect to see a lot more of CoinFund as we roll out new educational resources and products. If you see the CoinFund team at events, please say hi! While the community is still small, there are constantly new faces, and a big part of our excitement for the future comes from the extraordinary talent, both young and older, betting their careers on this space.
I enter this new role with 18 years of fundamental investing experience at what I consider one of the top long-only investment firms on the Street, Jennison Associates. I have been lucky to learn from the best: investors who have been early in finding companies with high quality, durable, and misunderstood growth through all market conditions since 1969. I couldn’t imagine a better training ground for my venture into the blockchain space!
I couldn’t finish this ‘Hello, World!’ without a quick market perspective. I am very bullish on Bitcoin’s price over the next few years. A series of fundamental catalysts are on the horizon in the first part of this year, and 2H19 was characterized by a number of short-term fundamental and technical dynamics that put downward pressure on price. The analogy I like to use is that Bitcoin was like a balloon being pushed under water at the end of last year, and that downward pressure should end by mid-year at the latest, and potentially sooner. As has happened in prior cycles, I think a move higher in Bitcoin is likely to unleash the next wave of innovation and investment into the ecosystem, which further strengthens the foundation. When this occurs, there will once again be lots of companies and assets that go up in valuation quickly, and down even faster, but out of each bubble comes a new wave of talent, infrastructure, and ideas that will lead the space to the next order of magnitude increase in value, both economic and societal.
I can’t wait to see how the next decade unfolds, and I look forward to meeting many of you over the course of this year!
- See also: “CoinFund 2020: Seth Ginns joins our team with a focus on liquid investments”
- Check out the CoinFund’s website
- Send Seth a message on Twitter
Grayscale Total Assets Value Soars Above $50 Billion Following the Recent Bitcoin ATH
Top-tier digital assets manager Grayscale has seen an increase in the value of its total AUM (Assets Under Management) to above $50 billion as bitcoin’s price marked a new all-time high recently.
The Grayscale Bitcoin Trust (GBTC) is now worth over $41 billion, while the Ethereum Trust (ETHE) holds over $7.4 billion.
The Road to $50B
As reported, Grayscale added five new tokens to its list of trust offerings, including Chainlink (LINK), Basic Attention Token (BAT), Decentraland (MANA), Filecoin (FIL), and Livepeer (LPT).
According to the firm, this integration came shortly after seeing a large inflow of clients demanding exposure to other cryptos, while most dominant assets consolidated at the beginning of March.
04/14/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) April 14, 2021
Now, the company reports that its total assets under management (AUM) have grown in value to more than $50 billion for the first time ever. It’s a major milestone for Grayscale.
At the time of writing, BTC is trading at around $63,000 while Ethereum’s ETH eyes $2.5K and a lot of other altcoins looking very well across the board.
AUM Growing Fast
As the interest for crypto assets increases, the firm’s total AUM is growing rapidly. On April 9, Grayscale’s total AUM grew by more than $1 billion in less than 24 hours. Michael Sonnenshein, the CEO, has stated that the firm amplified its suite of investment trusts as accredited investors and clients were demanding exposure to more cryptocurrencies.
Institutional investors have also intensified their demand, while Bitcoin mining companies are making big purchases of Antminers. As reported, Riot Blockchain bought 42,000 S19 Antminers from crypto-mining company Bitmain, totalling a purchase worth 138.5 million.
Finance officials pour cold water on cryptocurrency amid Coinbase celebrations
Finance officials from both sides of the globe are taking the opportunity to criticize the value and utility of cryptocurrencies, as media focus intensifies on the space following Coinbase’s direct listing on the Nasdaq.
Bank of Korea Governor Lee Ju-yeol said cryptocurrencies had “considerable limitations” as a method of payment, following a monetary policy meeting on Thursday, reports local outlet KBS World.
While asserting that it was difficult to accurately value cryptocurrencies due to their volatile price fluctuations, Lee said the BOK had not shifted on its stance that they had no intrinsic value.
Lee also referenced United States Federal Reserve Chairman Jerome Powell, noting that the head of the Fed shared his sentiments on the crypto space.
Hours earlier, Powell stated in a virtual interview with The Economic Club of New York that cryptocurrencies were purely speculative, adding that they had not been readily adopted as a means of payment.
“They’re really vehicles for speculation. They’re not really being actively used as payments,” Powell said, according to CNBC.
Flying in the face of Powell and Lee’s comments is the recent adoption of cryptocurrency by major global payment processors. Visa, Mastercard and PayPal all began to implement crypto payment options in the past few months, while Tesla introduced Bitcoin (BTC) as a payment option for its electric car business.
That’s not to say Bitcoin and other cryptocurrencies are a sure thing as far as payment methods go. Bitcoin’s average transaction fee is currently around $30 due to its limited block size and resultant network congestion. For this reason, payment processors are often forced to eat such transaction fees as a cost of doing business. Until they can no longer afford to, as was the case with gaming platform Steam in 2017.
One point of agreement shared by Powell and the crypto community is the suggestion that cryptocurrency could be compared to gold — but for completely different reasons. Cryptocurrency (particularly Bitcoin) proponents argue that the technology can be used as a long-term store of value in the same manner as a precious metal.
Powell, however, intended the comparison to be derisory. The Fed chairman’s opinion of gold seems to be no better than that of cryptocurrency.
“For thousands of years, human beings have given gold a special value that it doesn’t have,” said the chairman of the fiat-printing center of the United States.
As XRP Skyrockets, Ripple CTO David Schwartz Wants You To Consider Selling Some Crypto Holdings
David Schwartz, the Chief Technical Officer at Ripple Labs, has been giving some pretty positive investment advice, but it comes at an interesting time.
Simply put, the CTO believes that if someone has life-changing amounts of different cryptocurrencies, that person should definitely consider selling some of the said cryptos in order to reduce the risk of failure and over-exposure. This was communicated to Schwartz’s followers in a tweet, and he later clarified that this investment advice is not representative of some prophecy or projection about the future of any cryptocurrency market, and is mostly just general advice.
Schwartz said in the tweet that it was likely to be his “least famous tweet” ever, but he nonetheless advised his followers that selling a considerable portion of their respective cryptocurrency assets isn’t a bad idea, particularly given the industry’s unpredictable nature. This is definitely real, as there have been countless examples of people keeping their investments for far too long, only to see the valuation of those assets plummet by the time the owners attempt to cash them out.
Furthermore, with the present state of the cryptocurrency industry, XRP has risen by 850 percent this year while Bitcoin has simultaneously risen by 790 percent to a new all-time peak of $64k.
Schwartz has, in the past, taking his own advice. In 2019, he admitted to selling $40,000 in ETH prior to the late-2017 bull run in order to buy solar panels. In the most recent thread, he mentioned that, in retrospect, he could not have sold the majority of it. “I guess I was hoping it would come back down so I could buy back in,” he tweeted. “However, it did not succeed. Of course, you may come to regret taking smaller risk,” he said.
Ripple V. SEC
The legal battle between Ripple and the SEC is still ongoing. Despite recent wins for Ripple, the matter is still far from settled. Furthermore, during a legal proceeding, executives normally maintain a low profile so that their comments do not become weapons to be used against them.
Schwartz, on the other hand, was thinking of cryptocurrencies in general, not XRP directly, and he also suggested that cryptocurrency prices can and so often do deteriorate.
However, XRP seems to be an exception to this rule, as its particular price has been slowly stretching, hitting its highest level in three years at just over $1.8.
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